In re Novo Nordisk Sec. Litig.

Docket number: 3:17-cv-00209 (D.N.J.)

Hamilton Lincoln Law Center represents an objector challenging the fairness of a class action settlement that pays a third of the $100 million gross settlement fund to attorneys, instead of the customary 25%.

The class action was brought on behalf of Novo Nordisk A/S shareholders alleging that the companies regulatory filings and earning statements were materially misleading in violation of securities law. The complaint alleged that the class was potentially large enough to include thousands of holders of Novo Nordisk securities injured by the companies allegedly inflated earnings reports and projections.

The parties reached a settlement paying class members an estimated recovery of $0.47 per share, before subtracting their fees. HLLI objected to the settlement on behalf of class member, and HLLI attorney, Ned Hedley. In its objection, HLLI argued primarily that class counsels fee request was unfair under Federal Rule of Civil Procedure 23 because: (1) the fee request was unreasonably disproportionate to the result achieved for the class; (2) the settlement lacked any unique factors that would justify a fee award in the upper range of allowable awards; (3) the fee request was not in line with market rates for attorney’s fees; (4) the fee request failed to disclose the plan of allocation for the settlement fund; and (5) the settlements quick-pay provision violates the Private Securities Litigation Reform Act. HLLI argued in the alternative that attorneys’ fees should be reduced to the 25% benchmark of the gross fund.

The court held a fairness hearing on July 7, 2022, and issued its opinion granting final settlement approval on July 13.

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